Gross Margin % is calculated as gross profit divided by its revenue. Digimarc's Gross Profit for the
three
months ended in Dec. 2023 was $5.83 Mil. Digimarc's Revenue for the
three
months ended in Dec. 2023 was $9.28 Mil. Therefore, Digimarc's Gross Margin % for the quarter that ended in Dec. 2023 was 62.79%.
Warning Sign:
Digimarc Corp gross margin has been in long-term decline. The average rate of decline per year is -2.7%.
The historical rank and industry rank for Digimarc's Gross Margin % or its related term are showing as below:
DMRC'
s Gross Margin % Range Over the Past 10 Years
Min: 50.74 Med: 63.03 Max: 67.14
Current: 57.86
During the past 13 years, the highestGross Margin % of Digimarc was 67.14%. The lowest was 50.74%. And the median was 63.03%.
DMRC's Gross Margin % is ranked better than 66.21% of 2628
companies
in the Software industry
Industry Median: 41.71
vs DMRC: 57.86
Digimarc had a gross margin of 62.79% for the quarter that ended in Dec. 2023 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Digimarc was -2.70% per year.
Digimarc Gross Margin % Historical Data
The historical data trend for Digimarc's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Competitive Comparison of Digimarc's Gross Margin %
For the Information Technology Services subindustry, Digimarc's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Digimarc's Gross Margin % Distribution in the Software Industry
For the Software industry and Technology sector, Digimarc's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Digimarc's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Digimarc (NAS:DMRC) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Digimarc had a gross margin of 62.79% for the quarter that ended in Dec. 2023 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Digimarc Gross Margin % Related Terms
Thank you for viewing the detailed overview of Digimarc's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Digimarc Corp provides automatic identification solutions to commercial and government customers and license technology and patented inventions to solution providers. Its Digimarc Platform applies a unique identities to virtually all media objects including product packaging, commercial print, audio and video that can be automatically identified by an enabled ecosystem of industrial scanners, smartphones and other interfaces. The company generates revenue through commercial and government applications of its technology. The company derives its revenue primarily from software development services, subscriptions for products and related services, and licensing of patents.
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